The rising of E-business and network trade has promoted the transform and new development of international trade. Due to this, this paper attempts to investigate the impact of E-business on international trade between China and South Korea. On the grounds of rapid development of E-business, the E-business is regarded as a determinant that can impact the international trade between China and South Korea. Meanwhile, the quarterly data form the first quarter of 2000 to the fourth quarter of 2017 are employed to conduct an empirical analysis under the vector auto-regressive model. The international trade between China and South Korea is treated as an independent variable. The E-business, the foreign direct investment and the real exchange rate are treated as dependent variables. Furthermore, a menu of statistic approaches such as the Granger causality test and the vector auto-regressive estimates will be used to testify the impact of E-business on international trade between China and South Korea. Via the Granger causality test, the results report that the E-business is major reason that can drive the development of international trade between China and South Korea. Through the vector auto-regressive estimates, the results also report that the E-business has a positive effect on international trade between China and South Korea. Furthermore, this paper provides a view that the E-business is a kind of a determinant that can promote the international trade between China and South Korea. Therefore, the China’s government should pay much attention to the infrastructure of E-business so as to enlarge the trade volume between China and South Korea.

• He Yugang(Department of International Trade, Chonbuk National University)